Senior living development is anything but easy in 2026, which is why some operators are adding pocket neighborhoods, expanding independent living and memory care and planning other new projects to expand their existing campuses.
These new projects typically are aimed at either end of the senior care continuum, ranging from adding lifestyle-focused independent living to expanding memory care capabilities.
Glen Allen, Virginia-based senior living provider Lifespire of Virginia has over the last few years repositioned its five life plan communities through targeted expansions of hybrid homes, cottages and pocket neighborhoods. The company’s intention was to better meet future demand and remain attractive without the need for securing a new site, according to President Jonathan Cook.
Creating smaller, more dense areas of independent living hybrid homes is part of the organization’s journey to offer more independent living options for older adults seeking lifestyle changes in retirement, and these elements create a more clustered, neighborhood-like feel that residents and prospects have told the operator they enjoy.
For example, the organization’s Lakewood hybrid homes project on the 128-acre continuing care retirement community (CCRC) uses the space and layout of a cottage with the social element and close proximity to amenities offered on campus, creating a feel that is akin to multifamily living. In May, LifeSpire made plans for three new hybrid home buildings that will bring 42 new independent living units.
LifeSpire of Virginia / LakewoodThis builds on an $80 million campus expansion project at the organization’s Lynchburg, Virginia campus, The Summit, that added 18 new cottage homes and was completed last year. The units are already sold, and the success and momentum has carried over to the Lakewood expansion, as the new effort pre-sold within five weeks of starting sales and marketing, Cook said.
“The reason these are successful is because people want to be part of the community and they want to be with other residents, but they don’t want to be in the main building yet on campus,” Cook said. “One of the big trends we’re picking up from our consumers in focus groups is they also value outdoor living space.”
Old model is ‘no longer how we want people to live’
Traditionally, senior living communities were built with a large anchor property offering all services in one building. But this “old operating model” is outdated, according to Distinctive Living CEO Joe Jedlowski. Cottages and pocket neighborhood development are a relatively new way of creating a neighborhood feel with the security blanket of nearby amenities or in-home care services.
“The old operating model assumed everything needed to happen inside one building,” Jedlowski said. “That’s no longer how people want to live.”
In May, Freehold, New Jersey-based Distinctive Living broke ground on LiveWell Cottages at Vineland, a pocket neighborhood concept in Vineland, New Jersey, introducing a new model featuring private cottage homes that can be integrated with home care. This balances independence while still being able to meet light care needs residents may have as they age. The 25-acre development will include multiple neighborhoods of 130 cottage homes for older adults 65 and older designed to serve the middle market.
“For decades, senior living has been built around the point when someone needs care. I think that’s backwards,” Jedlowski said. “With our LiveWell pocket neighborhood concept, we wanted to completely rethink that model.”
Distinctive Living / LiveWell Cottages at VinelandBy creating a neighborhood concept, Jedlowski said the community can offer healthcare and wellness services, alongside typical amenities like transportation, dining and hospitality services, blending the need for independence and privacy that older adults considering a lifestyle change are asking for.
“They have their own home, driveway, front porch, neighbors and independence while gaining the peace of mind that support is available whenever they need it,” Jedlowski said.
These types of developments can create a longer length of stay, improve occupancy and margins and also create a “more predictable continuum of care,” Jedlowski added. Prospective residents most interested in cottage-style senior living concepts are active, travel frequently, volunteer often and maintain active lifestyles, seeking “fewer responsibilities, not less independence,” Jedlowski added.
Instead of “forcing density onto a property,” neighborhood concepts “create something that feels more intentional,” and help make a residential and walkable environment that is connected to nature while still offering access to outside services.
Distinctive Living is also starting on an adaptive reuse project in Somerset County, New Jersey, in partnership with Melillo Equities and PointsFive. The project, known as CopperWood Senior Living, partners are transforming a former corporate campus into luxury senior living with a full continuum of services spanning 214 residences. Even in this adaptive reuse context, Jedlowski sees the project as a way to create intimate residential neighborhoods that new entrants desire by using the collection of existing buildings on site for senior living services.
The campus, built in 1979, spans 480,000 square feet across a 10-building campus with postmodern design, brick-clad buildings, copper accents, a clocktower, slotted glass windows and manicured outdoor spaces. Residents will have access to full-service dining, wellness facilities, a fitness center, pool, spa and sauna, dog park, performing arts center and outdoor athletic courts.
Future growth focused on creating options for older adults
Earlier this year, Thrive Senior Living announced plans for an 80-acre senior living campus near Chattanooga, Tennessee, spanning roughly 400 units ranging from for-sale age-restricted single family homes, independent living cottages and apartments, along with assisted living and memory care.
The project, known as Thrive at Brooks Dairy Farm, is aimed at creating a range of ownership and rental opportunities for older adults that at the same time create diverse living experiences and a neighborhood-like atmosphere.
Thrive Senior Living / Thrive at Brooks Dairy FarmEarlier this year, Thrive Senior Living announced plans for an 80-acre senior living campus near Chattanooga, Tennessee, spanning roughly 400 units ranging from for-sale age-restricted single family homes, independent living cottages and apartments, along with assisted living and memory care.
The project, known as Thrive at Brooks Dairy Farm, is aimed at creating a range of ownership and rental opportunities for older adults that at the same time create diverse living experiences and a neighborhood-like atmosphere.
“In certain areas, standalone projects still work well, but we think providing this wider range of options will uplift the community at every level,” said Thrive Partner and Chief Investment Officer Alan Moise.
Thrive will manage the rental component of the property, with the end goal of it meshing with the 55+ single-family homes, Moise added. Combining a central building with independent living, assisted living and memory care with cottages and “stacked flats” helps “maximize” the ability to capture revenue but also creates a dynamic neighborhood experience for our residents and the homeowners, Moise said.
Future homeowners will have the option to purchase a membership giving access to the community’s amenities and services, including dining and wellness offerings, and giving independent older adults the peace of mind that services are available when they need them.
“That diversity enriches the overall experience at each level, so the homeowners can benefit from the operational component and the rental side will be able to benefit from enhanced amenities,” Moise said. “So, there’s something for everyone here.”
By offering a range of living options and creating a neighborhood environment, Moise said the effort will help Thrive and operators with similar projects “future-proof our communities.” These types of multifaceted developments require scale to be able to offer increased services and amenities when creating a “hospitality-driven environment,” Moise added.
Site work began this summer and the community is expected to open in 2029, with the project commencing in multiple phases.
Some operators are also pivoting to meet incoming demand by launching memory care development efforts. Cleveland-based Judson Senior Living recently announced plans for a small-home, neighborhood concept for additional memory care on the organization’s 90-acre Franklin Circle campus in Cleveland. The addition will bring 36 memory care residents across four homes with private bedrooms and shared kitchen, living and outdoor areas.
“What we envisioned is having this accessibility for our residents to be able to have more autonomy,” CEO Kendra Urdzik said. “That’s what we envision for the future of memory care: that everyone is truly living in a part of the household and it’s not large floors and long hallways.”
The expanded neighborhood concept is expected to be finished late next year, with construction now underway.
Future focused on options, reaching customers sooner
The future of successful senior living development will hinge on creating larger, amenity-rich campuses with a range of product types to offer more options to older adults.
“The majority of our pipeline includes rental cottages,” Moise said. “The next generation is not looking for what they have in their mind as senior living, and so we have to think about how we can future-proof our communities.”
During a continued period of tough development conditions, Cook said operators have to “be smart about how you grow,” while keeping in mind factors like lifestyle and creating a neighborhood-style aesthetic that older adults demand.
Despite challenges in financing, zoning, construction costs and municipal approvals, Jedlowski views the industry’s biggest challenge going forward as changing the consumer perception of senior living. These neighborhood-style concepts emphasizing cottages or hybrid homes are a way to highlight “independence without isolation.”
“If we continue designing communities around how people actually want to live, instead of how our industry has always operated, I believe we’ll fundamentally redefine what senior living looks like for the next generation,” Jedlowski said.
